Gold dipped to $1,272.51 an ounce on Thursday after strong U.S. economic data lifted the dollar. Data showed the U.S. trade deficit narrowed in August as exports of goods and services rose to a more than 2-1/2-year high, while jobless claims fell more than expected.
Investor optimism over U.S. tax reforms by the Republican-controlled Congress spurred Wall Street to a record high, while the U.S. dollar index rose to seven-week highs at 93.989. A firmer dollar will further weigh on bullion.
On technical front, gold closed at the 100-day moving average of $1,273.44, and is expected to cross down the level to the 200-day moving average of $1,252.71. Investors shall closely watch the support around this level.
Silver were little changed at $16.65. Tracking gold, the white metal is supported at around $16.5.
Technically, silver, compared with gold, is more likely to consolidate in coming sessions. The support and resistance can be found at $16.3 and $17 respectively. Investors are recommended to trade within this range.

 
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